Since Straumann Holding AG (VTX:STMN) released its earnings in December 2018, the consensus outlook from analysts appear fairly confident, with earnings growth rate expected to be 22% next year, which is within range of the past five-year average earnings growth of 23%. Currently with trailing-twelve-month earnings of CHF273m, we can expect this to reach CHF331m by 2020. Below is a brief commentary around Straumann Holding's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for Straumann Holding
How will Straumann Holding perform in the near future?
The longer term view from the 16 analysts covering STMN is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
This results in an annual growth rate of 15% based on the most recent earnings level of CHF273m to the final forecast of CHF468m by 2022. EPS reaches CHF29.71 in the final year of forecast compared to the current CHF17.24 EPS today. Margins are currently sitting at 20%, which is expected to expand to 23% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Straumann Holding, I've compiled three pertinent aspects you should further research:
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Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
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Valuation: What is Straumann Holding worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Straumann Holding is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Straumann Holding? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.